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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (51376)	4/4/2006 2:36:33 PM
From: CalculatedRisk	Read Replies (1) \| Respond to of 306849

Insurance group: Area home prices could slump within two years GREATER CHANCE OF DECLINES IN EAST BAY, S.F. AREA mercurynews.com The odds are higher -- it's now basically a flip of the coin -- that record home prices in the San Jose area will decline during the next two years, a new study released today said. With rising interest rates making it even harder for buyers to afford the $722,000 median-priced home in Santa Clara County, San Jose has a nearly 55 percent chance that prices will slump, according to PMI Group of Walnut Creek, which sells private mortgage insurance that protects lenders from financial loss if homeowners default on their loans. The San Jose area, which includes Sunnyvale and Santa Clara, ranks No. 11 among the 50 metropolitan areas that PMI analyzed using data from the fourth quarter of 2005. It was the third consecutive quarter that San Jose's risk rating rose, climbing from 53 percent and 47 percent in the previous two quarters. The risk of a downturn is slightly higher elsewhere in the Bay Area, with a 58 percent chance of a decline in the Oakland-Fremont-Hayward area and a 55 percent risk in San Francisco-San Mateo-Redwood City area. ``You really can't have a situation where something as basic as home prices gets that far away from economic fundamentals for that long a period of time,'' said Beth Haiken, a spokeswoman for PMI Group. ``It's just not sustainable.'' <MORE>

To: Lizzie Tudor who wrote (51376)	4/4/2006 2:38:22 PM
From: GraceZ	Respond to of 306849

Not the part about declaring BK and keeping the money. Unlike purchase loans, HELOCs are recourse loans, you can't just give back the house and all is forgiven. if you have assets they will be attached.